The Certified Gold Exchange’s Precious Metals Risk Disclosure Statement
Thank you for taking the time to read about some of the risks associated with investing in precious metals. Although we try to cover many risks associated with gold, silver, platinum, palladium and rhodium investing we are sure there are other factors of risk we have not considered in this document so due diligence is always recommended before investing in precious metals. As always you will find no small print or jargon from the Certified Gold Exchange, Inc.
We are a 100 percent self-directed gold seller and buyer. That means we don’t tell you what, when, where, why or how to buy or sell any item(s). You alone direct our actions, you are the “self” in the term “self-directed.” The Certified Gold Exchange and its team does not give investment advice; we sell metals and give advice in regards to the tangible products we offer for sale or buy-back. We also don’t tell you how much of your money to put into metals. This something you alone must decide because the results (or lack of results) of your actions are something you alone will have to live with.
Precious metals can be risky! In fact gold’s (the most conservative metal) largest quarterly loss since 1920 is 28 percent. Even during gold’s long-term bull markets it has unleashed volatile price fluctuations. You could easily buy into the gold market on one of these downturns. If that were the case you could end up holding a long time before prices recover. It is advised that you look at long-term charts to evaluate the price swings yourself before investing.
Precious metals pay no dividend and produce zero income. Therefore anyone needing to earn income from their capital is advised to avoid investing in precious metals.
Forecasts and projections are just opinions and never facts. One thing we know for sure is that the opinion giver has a 50 percent chance of being right and a 50 percent chance of being wrong.
Precious metals markets’ past performance is not proof of future market performance. Just because something happened last time or every time does not mean it will happen again next time.
When a company tells you that they guarantee to buy back your precious metals hang up the phone. It’s illegal and entirely unrealistic to guarantee that. Let’s say Company A sells $500 million annually in gold for 10 years. Now the price goes up 200 percent and everyone wants to sell. Does this company have $15 billion dollars on hand? Of course not! So guaranteeing to buy metals back makes a company a clear liar or dreamer, and neither are good attributes for a supplier.
What we can say is that we have bought every time a client has called in the past. We highly encourage you to call us when selling and we will always check all major exchanges to bring you our best buy price. All dealers make a two-way market for their products but realistic ones will never guarantee it.
It’s recommended that you personally take physical delivery of any investment you make in precious metals. Pooled, stored, certificate, E-gold, ETFs and gold stocks all have some degree of third-party risk to the investor. These operations always look reputable up until the time the investor has one hand on his forehead and one on his hip wondering, “How could I have let this happen?” Always take delivery of your metals and repeat this old saying “Tis’ a wise man, which clutches thy gold in one hand and thy pitchfork in the other.”
This is a risk that you may need to sell your precious metals before you have reached their buy/sell spread (difference between a dealer’s buy and sell prices). This would mean you would be selling for less than you paid. Additionally, the market price may drop adding to the time it would take to break even. This is why it’s suggested that 3-5 years be a minimum hold if you are buying the metals in the hope of appreciation in value. Also, holding long-term is not a guarantee that the coins will rise above your purchase price.
The Certified Gold Exchange works with many clients that want help putting precious metals into an IRA. We can assist you in doing the paperwork and we ship your purchase to the custodian. We can also update you on the current value and help with liquidation. We are 100 percent independent of the custodian and depository that hold your metals and should not in any way be responsible for their actions. All the IRA custodians we work with are self-directed, that means they offer no investment advice. You alone will direct your money. We will be here to offer advice on buying or selling precious metals only.
If you put a penny in a gumball machine and a dime comes rolling out you have capital gains of 9 cents. This is how precious metals work and if you take out more money than you put in you have capital gains. So be sure to notify your accountant anytime you sell metals (classified as collectables for tax reasons) for more or less than you originally paid. Always pay Caesar first! Collectables can have a higher capital gains rate than traditional investments so please consult your tax advisor. CGE will not offer any tax advice other than the very general information in this paragraph.
CGE staff and gold advisers are not licensed investment advisers. Our sole area of concentration is in the area of precious metals and helping dealers, companies and the public make purchases and/or liquidations within the physical elements we deliver.
The Certified Gold Exchange has never had a single claim of counterfeit products. This is not the industry norm as counterfeit metals are a growing problem and a real investor danger. It’s always better to invest in PCGS and NGC certified gold and silver coins. Every PCGS and NGC coin is handled and inspected by at least two independent numismatists whose experience and knowledge far outweigh most gold dealers’ shipping and receiving departments.